1 Set up T accounts with proper account titles and beginning balances 2 Analyze each of the summary transitions 1 18, determine the proper journal entries and record the journal entries in the general journal 3 Post journal entries to T accounts To finance business expansion, the company signed an agreement with a national bank in December 2021 to obtain a $30,000 three year loan The amount was deposited into the companys bank account on January 1, 2022 The interest on the loan is due semiannually and carries a 12 annual interest rate On January 20, Great Adventures reached an agreement to purchase a large plot of land in a mountainous area in Vermont as the site for the future ski resort In this share based transaction, the company agreed to issue 500,000 shares of its common stock as a way of payment The common stock has a $1 par value per share The transaction was closed on March 1 when stocks were trading at $23 per share On February 1, the company issued five million shares of its common stock through an investment banker on Wall Street and received $95,760 in cash proceeds In January, the company received $45,000 in cash from customers who bought merchandizes last year The remaining $30,000 was received in February On January 28, the company paid its suppliers for a total of $29,630 in cash through its bank for the purchases made last year On February 1, the company signed an agreement with a national TV station to run the companys infomercial between 11 00 am 12 00 pm each day for three months and paid a total cost of $1,660 On February 15, the company closed a deal to purchase a new warehouse building in a suburban area outside Boston for $8,800 in cash The warehouse was placed in use immediately On February 28, the company closed a deal to sell an office building for $4,580 in cash at a significant gain of $2,115 The building was temporarily rented to another company before it was sold The building was purchase in 1980 for a total cost of $5,675 On February 28, the company paid its suppliers for the remaining unpaid purchases made last year On March 1, the company paid the employers portion of health insurance premium to the insurance provider The total amount paid was $12,435 which would cover a period of 12 months The remainder of the premium was paid by the employees through salaries withholding, according to the employment contract On March 1, the company purchased 300,000 shares of its own common stock at $24 per share These shares were needed to issue to top executives for their employee stock option plan On March 30, the company declared and paid a quarterly cash dividend of $0 20 for shares outstanding on March 28 Companys total sales for the quarter are listed below All sales were credit sales Total Net sales Revenue January $148,000 February $168,000 March $199,000 Total $515,000 The amount was net of sales return and sales discount The collection for sales was as follows January sales were received in full by the end of March The total amount received for February and March sales was $138,000 and $106,000, respectively Companys total salary and other operating expenses each month were as follows Salaries were paid in the form of direct deposits to employees bank accounts biweekly the employees portion of health insurance premium was withheld from salaries and paid to the insurance provider at the same time when salaries were paid the estimated personal income taxes were withheld and paid to the government agencies before the end of each month Employers payroll taxes which included the unemployment tax and social security tax were remitted to the government agencies immediately as they were recorded Other operating expenses which included utility, property taxes, freight out, and other miscellaneous expenses were all paid in cash via online banking Companys merchandize purchases were as follows The companys purchase agreement specifies that the suppliers ship merchandizes and send invoices, and the company inspects merchandizes after receiving them and pay the invoices after inspection The purchase amount listed included purchase price, tax, tariff, shipping, and insurance, net of purchase returns and discounts Payment for purchases were as follows January purchases were fully paid by the end of March The amount paid for February and March purchases was $99,000 and $87,000, respectively The remaining unpaid purchases would be paid in the future months in April and May Company paid in cash for the interest on the 2 year commercial note for the current quarter as well as the amount owed from last year The note is not due until June 30, 2023 Salary Payroll Tax Expenses $ 26,410 28,230 21,620 $ 76,260 Other Operating Expenses $ 5,630 6,430 January February March (First 3 weeks) Total 4 460 $ 16,520 January February March Total Total Merchandise Purchase Costs $ 106,000 108,000 121 000 $ 335,000 Salary Payroll Tax Expenses $ 26,410 28,230 21,620 $ 76,260 Other Operating Expenses $ 5,630 6,430 January February March (First 3 weeks) Total 4 460 $ 16,520 January February March Total Total Merchandise Purchase Costs $ 106,000 108,000 121 000 $ 335,000

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1. Set up T-accounts with proper account titles and beginning balances. 2. Analyze each of the summary transitions 1 18, determine the proper journal entries

1. Set up T-accounts with proper account titles and beginning balances.

2. Analyze each of the summary transitions 1 18, determine the proper journal entries and record the journal entries in the general journal. 3. Post journal entries to T-accounts.

To finance business expansion, the company signed an agreement with a national bank in December 2021 to obtain a $30,000 three-year loan. The amount was deposited into the companys bank account on January 1, 2022. The interest on the loan is due semiannually and carries a 12% annual interest rate.
On January 20, Great Adventures reached an agreement to purchase a large plot of land in a mountainous area in Vermont as the site for the future ski resort. In this share-based transaction, the company agreed to issue 500,000 shares of its common stock as a way of payment. The common stock has a $1 par value per share. The transaction was closed on March 1 when stocks were trading at $23 per share.
On February 1, the company issued five million shares of its common stock through an investment banker on Wall Street and received $95,760 in cash proceeds.
In January, the company received $45,000 in cash from customers who bought merchandizes last year. The remaining $30,000 was received in February.
On January 28, the company paid its suppliers for a total of $29,630 in cash through its bank for the purchases made last year.
On February 1, the company signed an agreement with a national TV station to run the companys infomercial between 11:00 am 12:00 pm each day for three months and paid a total cost of $1,660.
On February 15, the company closed a deal to purchase a new warehouse building in a suburban area outside Boston for $8,800 in cash. The warehouse was placed in use immediately.
On February 28, the company closed a deal to sell an office building for $4,580 in cash at a significant gain of $2,115. The building was temporarily rented to another company before it was sold. The building was purchase in 1980 for a total cost of $5,675.
On February 28, the company paid its suppliers for the remaining unpaid purchases made last year.
On March 1, the company paid the employers portion of health insurance premium to the insurance provider. The total amount paid was $12,435 which would cover a period of 12 months. The remainder of the premium was paid by the employees through salaries withholding, according to the employment contract.
On March 1, the company purchased 300,000 shares of its own common stock at $24 per share. These shares were needed to issue to top executives for their employee stock option plan.
On March 30, the company declared and paid a quarterly cash dividend of $0.20 for shares outstanding on March 28.
Companys total sales for the quarter are listed below. All sales were credit sales.
Total Net sales Revenue: January=$148,000. February=$168,000. March=$199,000. Total= $515,000. The amount was net of sales return and sales discount.
The collection for sales was as follows: January sales were received in full by the end of March. The total amount received for February and March sales was $138,000 and $106,000, respectively.
Companys total salary and other operating expenses each month were as follows:Salaries were paid in the form of direct deposits to employees bank accounts biweekly; the employees portion of health insurance premium was withheld from salaries and paid to the insurance provider at the same time when salaries were paid; the estimated personal income taxes were withheld and paid to the government agencies before the end of each month. Employers payroll taxes which included the unemployment tax and social security tax were remitted to the government agencies immediately as they were recorded. Other operating expenses which included utility, property taxes, freight-out, and other miscellaneous expenses were all paid in cash via online banking.
Companys merchandize purchases were as follows:

image text in transcribed

The companys purchase agreement specifies that the suppliers ship merchandizes and send invoices, and the company inspects merchandizes after receiving them and pay the invoices after inspection. The purchase amount listed included purchase price, tax, tariff, shipping, and insurance, net of purchase returns and discounts.

Payment for purchases were as follows: January purchases were fully paid by the end of March. The amount paid for February and March purchases was $99,000 and $87,000, respectively. The remaining unpaid purchases would be paid in the future months in April and May.
Company paid in cash for the interest on the 2-year commercial note for the current quarter as well as the amount owed from last year. The note is not due until June 30, 2023.

Salary & Payroll Tax Expenses $ 26,410 28,230 21,620 $ 76,260 Other Operating Expenses $ 5,630 6,430 January February March (First 3 weeks) Total 4.460 $ 16,520 January February March Total Total Merchandise Purchase Costs $ 106,000 108,000 121.000 $ 335,000 Salary & Payroll Tax Expenses $ 26,410 28,230 21,620 $ 76,260 Other Operating Expenses $ 5,630 6,430 January February March (First 3 weeks) Total 4.460 $ 16,520 January February March Total Total Merchandise Purchase Costs $ 106,000 108,000 121.000 $ 335,000